Positive Signs For Scorpio Tankers

Scorpio Tankers is expanding its fleet. The tanker operator has reached agreements with Hyundai Mipo Dockyard Co. Ltd. of South Korea (HMD) for four newbuilds. HMD will construct two MR product tankers and two Handymax product tankers for Scorpio. The two MR tankers will cost about $34.5 million and the two Handymax tankers will cost $32.5 million. The ships will be delivered in 2017.

The contracts come with a fixed price and options for 12 additional ships of both sizes.

Scorpio’s orders follow Q2 results which exceeded analyst forecasts. The company took net income of $57.6 million, which raises its first half profit to $98.2 million. In the same period last year, the operator sustained losses of $11.2 million.

Scorpio now has 12 vessels in its order book totalling $596 million.